DEARBORN, Mich. (Michigan News Source) — Amid growing national scrutiny of diversity, equity, and inclusion (DEI) programs, Ford Motor Co. has announced its decision to scale back participation in several external DEI initiatives. The move, detailed in an August 28 memo from CEO Jim Farley, outlines a reevaluation of the company’s DEI practices in response to the evolving political and legal environment surrounding corporate diversity efforts.

According to Farley, Ford’s decision to withdraw from certain DEI rankings and indexes reflects the company’s attempt to sidestep the increasingly polarized debates that have come to dominate the discourse around DEI. Instead, Ford intends to realign its DEI efforts by concentrating on internal strategies that are more closely linked to business outcomes and employee engagement. 

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Focusing on what Farley described as a “high-performance culture,” Ford does not tie compensation to specific diversity goals or employ hiring quotas, which may appease critics concerned about potential overreach in DEI practices. At the same time, Ford also reiterated its commitment to developing a dealer network that reflects the diversity of the communities it serves.

“For more than a century, Ford has been a pioneer in providing opportunities to people of all races, genders, and backgrounds,” Farley wrote in the opening line of the memo. “As we work together to build an even brighter future, we are mindful that our employees and customers hold a wide range of beliefs, and the external and legal environment related to political and social issues continues to evolve.”

The decision to scale back participation in external DEI evaluations comes at a time when many corporations are reassessing their diversity initiatives amidst growing political and legal scrutiny, according to The Detroit News. Following the U.S. Supreme Court’s ruling against affirmative action in university admissions last year, conservative groups have increasingly challenged DEI policies in the corporate sector, arguing that they could constitute illegal discrimination.

While Ford has chosen to disengage from some external DEI measures, Farley said that Ford will continue to evolve its Employee Resource Groups (ERGs) “to focus on networking, mentorship, and community service,” ensuring that all employees have opportunities for personal and professional growth.

Moreover, Ford Philanthropy, the company’s charitable arm, will continue to support initiatives that align with its long-standing mission of “building a better world.” These efforts will be concentrated on areas where Ford can make the most impact, such as education, entrepreneurship, and services like disaster recovery.